SunShot Spotlight: Solar and Real Estate

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With nearly one million solar energy systems installed on residential rooftops across the country, buying or selling a solar home is getting more and more common. Just like a renovated kitchen or a finished basement increases a home’s value, solar has been shown to boost home valuation and shorten a home’s time on the market. In addition, new borrowing tools give solar-interested homeowners access to financing programs that can lower the cost of capital and unlock new ways to go solar. The real estate market is embracing solar, making it vital that real estate agents, appraisers, and homeowners increase their solar knowledge and leverage the premium-boosting power of a solar system to sell or refinance their homes.

The SunShot Initiative has funded projects, tools, and resources designed to help make it easy to purchase a solar system for your home, or buy or sell a solar home. This spotlight on solar and real estate aims to highlight our extensive work in this area and connect these resources with the professionals and homeowners who can use this information.

Featured Resources

Solar Boosts Home Values

Homeowners Guide to Going Solar – While there’s no one-size-fits-all solar solution, this guide compiles answers to frequently asked questions on solar and resources that can help homeowners determine what’s best for them.

PV Value – Sandia National Laboratories has developed a prospective model of determining the value of PV. Sandia uses an income capitalization approach, which considers the present value of future energy production to determine the remaining value of a PV system. An online tool developed by Energy Sense Finance, has been released to the public.

Residential Green Valuation Tools – This resource from the Appraisal Institute helps appraisers learn more about the features of green homes and the tools professionals will need to become a green-friendly appraiser.

Consumer Solar Checklist –This list by the Interstate Renewable Energy Council is designed to encourage Americans to consider important pieces of information before entering into a contract to install a solar system.

Clean Energy Consumer Bill of Rights – The Interstate Renewable Energy Council has created this guideline to address consumer issues, including safety, contractual transparency, warranties, and privacy issues realted to renewable energy technologies.

Financial Resources

Fannie Mae HomeStyle Energy – This new mortgage option gives borrowers the ability to complete clean energy upgrades for up to 15% the appraised value of their homes. Borrowers are able to finance energy-efficient upgrades when purchasing or refinancing a home, eliminating the need for a subordinate lien, home equity line of credit, Property Assessed Clean Energy (PACE) loan, or unsecured loan.

Model Leases and PPAs –The Solar Energy Industries Association created model contracts in an effort to further consumer protection and cost reduction programs.

Community Solar

Community and Shared Solar – An explanation of community and shared solar, an overview of SunShot Initiative funded projects in this area, and information and resources on this emerging topic.

National Community Solar Partnership – The National Community Solar Partnership works to expand access to community and shared solar throughout the nation, especially in low- and moderate-income households.